Accounting & bookkeeping Indore Answered

As a management consultant earning ₹30 lakh a year, do I have to maintain books of account, and which ITR do I file?

Asked by Neha, Indore 7 Sep 2026 1 answer 2 min read

The question

I left a corporate job and now consult independently from Indore; receipts this year will be about ₹30 lakh, nearly all by bank transfer. My expenses are small: a laptop, travel and a co-working desk. Must I keep formal books, get audited, and which return applies?
Share WhatsApp LinkedIn X

1 answer

ERPCA
ERPCA Expert Desk Verified answer

Practising chartered accountants at ERPCA · 7 Sep 2026

In short

You can avoid books and audit entirely by using section 44ADA, and at your expense level it is also the cheaper option.

Section 44ADA lets a resident professional with gross receipts up to ₹50 lakh (₹75 lakh if cash receipts are within 5%) declare 50% of receipts as income with no obligation to maintain books under 44AA or to be audited. On ₹30 lakh that is ₹15 lakh of deemed income. Your actual expenses are far below ₹15 lakh, so the presumptive route gives you a larger deduction than your real costs would. Management consultancy is covered because it falls within the notified professions.

You file ITR-4 (Sugam), pay advance tax in a single instalment by 15 March, and keep only enough records to prove the receipts: bank statements, invoices and the Form 16A certificates for the 10% TDS your clients deduct under 194J. If you ever want to declare less than 50% (say a year with heavy expenses), you must then keep books and be audited.

GST: you crossed ₹20 lakh, so registration is mandatory if it is not already done. Consulting is taxable at 18%, invoiced to clients who will mostly claim it as input credit, and the returns are quarterly under QRMP.

Next step

Register for GST if pending, keep every invoice numbered in sequence, and set aside roughly 25% of each receipt for advance tax so the 15 March instalment is painless.

General guidance on the facts given, not an engagement. Law as on the date of the answer.

Talk to ERPCA about your case →

Your situation is a little different?

Post it free. Practising professionals in accounting & bookkeeping answer in writing, usually within 2–3 working days.

Ask an expert, free
Ask a similar question, free
Link copied